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How the Government Shutdown May Affect Your Real Estate Deal

Posted By Wally Reule @ Oct 4th 2013 4:54pm In: Sedona Real Estate Market News

We hope that the government shutdown doesn't last very long, but you never know. In case you are in the middle of a real estate transaction, or are considering one, here is what you need to know by department

Internal Revenue Service The IRS is closed and is not processing any forms (I know, sad but true!), including requests for tax return transcripts.We have heard that some lenders are allowing for processing and closing with income verification to follow if the borrower has signed a Form 4506T requesting IRS tax transcripts. Still, expect some delays.

Federal Housing Administration The FHA will continue to endorse new loans in the Single Family Mortgage Loan Program, but will not make new commitments in the Multi-Family Program. Expect delays.

VA Loan Guaranty Program Lenders will continue to process mortgages, but expect delays.

Social Security Administration SSA is closed and will not be verifying social security numbers through the Consent Based SSN Verification Service. Many lender will continue to process loans subject to subsequent verification.

Department of the Interior - Bureau of Indian Affairs Property transactions on Leased Indian Tribal Land will not be processes or recorded.

Treasury Making Home Affordable programs  such as HAMP and HAFA will not be affected.

Rural Housing Programs If your lender has already received a conditional commitment  form the Rural Development office, the lender may proceed to close your loan. Lenders will not receive approvals on new loans.

Government Sponsored Enterprises Freddie Mac and Fannie Mae will continue to operate normally.

Flood Insurance The National Flood Insurance Program will not be affected because it is funded by premiums rather than tax dollars.

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